Question
Please complete on excel and show equations. Thanks! You are 30 years old and are considering studying for an MBA. You just received your annual
Please complete on excel and show equations. Thanks!
You are 30 years old and are considering studying for an MBA. You just received your annual salary of $60,000 and expect it to grow by 2.5% per year. MBAs typically earn $80,000 upon graduation, with salaries growing by 3.5% per year. The MBA program you are considering is a full-time, 2-year program that costs $30,000 per year, payable at the end of each study year. You want to retire on your 65th birthday. The relevant discount rate is 8%. Is it worth while for you to quit your job to study for the MBA? (Ignore income taxes)
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